Knight Frank Global House Price Index, 19.03.2008
Knight Frank Global House Price Index
|
Location |
2006 Q3 |
2007 Q3 |
2006 Q3 Rank |
2007 Q3 Rank |
Position change from 2006 Q3 index |
Position change from 2007 Q2 index |
|
Bulgaria |
14.0% |
30.6% |
8 |
1 |
7 |
1 |
|
Singapore |
7.4% |
27.6% |
21 |
2 |
19 |
1 |
|
South Africa |
13.9% |
14.4% |
9 |
3 |
6 |
2 |
|
Iceland |
16.6% |
13.8% |
4 |
4 |
0 |
N/A |
|
New Zealand |
8.6% |
11.8% |
18 |
6 |
12 |
1 |
|
Croatia |
N/A |
12.1% |
N/A |
5 |
N/A |
N/A |
|
Canada |
9.8% |
11.7% |
11 |
7 |
4 |
2 |
|
Norway |
14.1% |
11.7% |
7 |
8 |
-1 |
-2 |
|
Sweden |
9.2% |
10.9% |
16 |
9 |
7 |
20 |
|
UK |
8.1% |
10.7% |
19 |
10 |
9 |
-2 |
|
Australia |
9.5% |
10.3% |
14 |
11 |
3 |
-1 |
|
Latvia (Riga)1 |
56.9% |
10.2% |
1 |
12 |
-11 |
-11 |
|
Hong Kong |
-2.6% |
9.9% |
31 |
13 |
18 |
-2 |
|
China |
5.8% |
8.8% |
23 |
14 |
9 |
-1 |
|
Indonesia |
9.4% |
7.2% |
15 |
15 |
0 |
2 |
|
Finland |
6.1% |
5.9% |
22 |
16 |
6 |
-1 |
|
Belgium |
9.6% |
5.7% |
13 |
17 |
-4 |
-3 |
|
Lithuania (Vilnius) |
20.3% |
5.6% |
2 |
18 |
-16 |
-6 |
|
Spain |
9.7% |
5.3% |
12 |
19 |
-7 |
-3 |
|
Estonia (Tallinn) |
16.0% |
5.2% |
5 |
20 |
-15 |
-16 |
|
Netherlands |
5.3% |
3.7% |
25 |
21 |
4 |
-2 |
|
Austria |
7.7% |
3.6% |
20 |
22 |
-2 |
-4 |
|
Switzerland |
2.0% |
1.9% |
27 |
23 |
4 |
0 |
|
Israel |
0.6% |
1.7% |
28 |
25 |
3 |
N/A |
|
Hungary |
-1.0% |
1.4% |
29 |
26 |
3 |
-4 |
|
US |
5.7% |
1.8% |
24 |
24 |
0 |
-4 |
|
Japan |
-2.8% |
-0.5% |
32 |
27 |
5 |
0 |
|
Ireland |
15.0% |
-0.9% |
6 |
28 |
-22 |
-3 |
|
Germany |
-3.0% |
-3.4% |
33 |
29 |
4 |
1 |
Latvia has been firmly knocked off the top spot by the recent EU newcomer – Bulgaria.Bulgaria has supplanted the previously top performing Baltic hotspot at the top of the Knight Frank league.
BULGARIAN PROPERTY PRICES FASTEST GROWING IN THE WORLD, 23.01.2008
Bulgaria managed to oust Latvia, which had become the traditional leader in the ranking.
Singapore ranked second with 27.6 per cent price growth. South Africa was third with 14.4 per cent.
According to the ranking, price growth was slowing down globally. Prices worldwide had grown by 8.2 per cent year-on-year in Q3 of 2007, compared to the 9.6 per cent growth in Q3 of 2006.
Increasing interests and tougher conditions receiving mortgages, caused the slow down.
Source: Sofia Echo – Bulgaria
FT REPORT - WEEKEND MONEY: Try eastern Europe for better property value, 08.10.2007
By Ellen Kelleher in London, Financial Times
Published: Oct 06, 2007
Buy-to-let investing in this country does not look particularly appealing as property prices and mortgage rates are high. So, if you are keen to plough money into a second property for the purpose of letting, you might want to consider a flat in Estonia, Poland or Bulgaria as an alternative.
Growth in residential property prices is slowing in most parts of the world because of the rise in interest rates and the tightening of lending criteria. But there are still countries where sterling goes far and value can be found in property.
"It is not all bad news for the global market," says Liam Bailey, head of residential research at Knight Frank, the international estate agent. "The Baltics, for example, have seen incredible growth over the last two years. And prices there are still at least 50 per cent less than those of properties in western Europe. In Estonia, Poland, Romania and Hungary, the feeling is there is much more room for potential growth."
A decade ago, when British property investors suffered a bout of wanderlust, they tended to buy villas in southern Spain. These days, however, more property investors are flocking to France, Portugal, eastern Europe and the coast of southern Turkey, where property prices have jumped 40 per cent in the past three years.
"Investors seem to be steering clear of Spain as they feel that the relentless modernisation along the coast has robbed the country of its rustic charm and that the volume of property to let has now reached its saturation point," says Matthew Weston, manager of overseas mortgages at Blevins Franks, the financial services group.
This year, the average value of a two-bedroom villa in Mallorca fell 20.5 per cent from 2006 while the value of a three-bedroom home dropped 12 per cent, according to Kyero, a Spanish property group. Prices also fell in Valencia and showed only a slight rise in Murcia.
Analysts claim Praia da Luz in Portugal, Nice, Cannes and even Paris are now far more attractive to Brits, with the price of properties in these areas ranging from €250,000 (£173,300) to €1m. The wealthy are also increasingly drawn to French ski resorts in Les Trois Vallées. While the price of a property in Courchevel is as much as €20,000 sq m, demand remains high as yields on properties hover between 5 and 7 per cent per year. Capital appreciation on homes in Chamonix ranged from 5 to 10 per cent over the past decade, according to Blevins Franks.
For many, the Baltics and eastern Europe - where prices tend to be a quarter of the price of UK properties - are even more enticing. In Poland, scores of new developments are sprouting up in Warsaw and Krakow, for example. A two-bedroom flat in the centre of Warsaw costs £75,000. Annual yields on properties in the city range from 6 per cent for more expensive developments to 8 per cent for starter flats.
In Tallinn, Estonia, the average price of a twobedroom apartment jumped 10 per cent this year from the same period in 2006, reports Blevins Franks. Rental prices rose almost 16 per cent in the city\'s centre.
"There is always an element of speculation in markets like Estonia and you\'ve got to do your research. But if you buy a quality product near a centre of employment, it should be relatively easy to let," advises Weston.
One point to consider before investing overseas is the cost: buyers need more money upfront - about 35 per cent of the purchase price in cash for a deposit and expenses, according to Ray Boulger of John Charcol, the mortgage adviser. Also, securing a mortgage may pose more problems outside the UK as lending requirements tend to be stricter (mortgage brokers advise taking out a mortgage in the country\\\'s currency to hedge risk). Mortgage rates vary widely from one country to another, but there are still good deals around, according to Conti Financial Services.
In France, a five-year fixed mortgage and interest repayment can be secured at a rate of 4.30 per cent with a maximum loan-to-value (
In Croatia, rates for variable mortgages are much higher and investors face a minimum rate of 8.5 per cent. In Bulgaria, rates for variable mortgages are also high at 7.5 per cent.
Sofia offers good investment potential, 10.08.2007
Lucrative investment opportunities are available in the Bulgarian region of Sofia despite extensive development in other Bulgarian areas, according to experts at Off Plan International. It is argued that Sofia has strong potential for investors taking a longer term approach, with properties that are likely to appreciate in value and high tenant demand for the foreseeable future. Since joining the European Union in January, Bulgaria has enjoyed a higher profile and increased international interest - a trend expected to continue ahead.
This makes the present a good time for investors prepared to commit to the Bulgarian property market, according to the firm.” Some of the coastal areas are over-developed or there is a high number of developments going up", commented Simon Walker, sales director.·” With Sofia being the capital... it would be very difficult to lose," he added. "You’d invest in Sofia in Bulgaria because you’d be looking at a longer term market.”· Experts have highlighted eastern European city centres as offering positive capital growth and relative investment stability compared to other regions.
EU ACCESSION INCREASES RESIDENTIAL PROPERTY PRICES IN BULGARIA, 02.05.2007
The price increase of residential property in Bulgaria after the country’s EU accession is sufficiently higher than expected, research ordered by investor.bg showed.
The price hike concerns both old and new construction in Sofia and in other bigger cities and towns.
The prices per sq m went up three to 12 per cent in Sofia’s residential disitrcts of Lyulin, Mladost and Nadezhda.
In some parts of the residential districts, prices wend down by four to five per cent. The growth difference was attributed to the willingness of some property owners to sell their apartments at much higher prices than the normal values.
Residential property prices in the other towns remained almost unchanged in the past four months. Only some parts of the coastal cities of Varna and Bourgas experienced more tangible price increase.
According to an online poll of investor.bg, 30 per cent of the Bulgarians think that EU membership led to a sufficient increase of residential property prices. Another 17 per cent said that the increase was insufficient and 22 per cent said that the increase concerns only some regions of the country.
SofiaEcho.com 2nd May 2007
Important information - TERMINAL 2, Sofia Airport, 12.03.2007
Sofia Airport is operating at two passenger terminals from 27th December 2006:
Terminal 1 - well-known to all customers; and
Terminal 2-the new European face of the capital airport.
www.sofia-airport.bg/pages/news.aspx
13 % of Britons Eye Property Purchase in Bulgaria, 12.03.2007
One in seven Britons is considering purchasing property in Bulgaria, following the country EU accession at the beginning of this year, according to a new survey.
The number of foreign visitors to Bulgaria went up by 8.3 % last year, bringing the total in 2006 to 1.5 million, while visitors to Romania went up from 800,000 in 2000 to 1.4 million in 2004.
"Based on the past history of other Eastern bloc countries joining the EU, where property prices have risen significantly these markets look set to become strong areas for capital growth.”
SOFIA AIRPORT TERMINAL COULD BE READY BY DECEMBER 20 2006, 13.11.2006
Tender Opens for Construction of Sofia Ring Road, 08.11.2006
Bulgaria and Romania ready to join the EU on 1 January 2007, 29.09.2006
Bulgaria and Romania are ready to become members of the European Union on 1 January 2007, as foreseen in the Treaty of Accession signed in 2005. The Monitoring Report the Commission released on 26 September shows that both countries have made further progress during the past months, stepping up efforts to complete their preparations for membership.
During their decade and a half of preparations for EU accession, Bulgaria and Romania have undertaken profound reforms and gone through a remarkable transformation in order to meet accession criteria.
In its previous Monitoring Reports of October 2005 and May 2006, the Commission pinpointed corruption and the reform of the judicial system as areas of serious concern for both countries. In May, Commission President José Manuel Barroso urged Bulgaria and Romania to intensify their efforts regarding these issues in order to finalise preparations. The Commission\'s latest report has found that their recent efforts are yielding good results.
"The accession of Bulgaria and Romania will mark an historic achievement: the completion of the fifth enlargement of the European Union, which further reunifies of our European family," said President Barroso. However, he stressed that the two countries needed to sustain their reform drive right until accession and beyond, to make further progress. "The EU\'s rules provide us with a comprehensive set of measures to deal with potential risks in acceding countries and in current Member States," he explained.
The Commission proposed a package of accompanying measures, including a cooperation and verification mechanism for the judicial system, as well as action to fight corruption and remedy any persisting shortcomings. These measures will enable the Commission to ensure the correct application of EU policies, and ensure the smooth accession of both countries.
http://ec.europa.eu/commission_barroso/president/focus/bulgaria_romania_en.htm
A Bulgarian newspaper published an article about Vitosha Park, 20.09.2006
Central Composition axis is connecting the houses in Vitosha Park Complex.
The project shall be finished until the end of 2008 year.
Private gated Complex with assured maintenance and management for each apartment will be built in the foot of Vitosha Mountain, right next to Simeonovo Gondola Lift. It is called “Vitosha Park” and consists of seven residential houses and one with public function.The Investor is “ Simeonovo Residential Park” Ltd. The Architectural project is made by “Ergo design Group” Ltd. with its leader arch.Tatyana Samuilova (Architecture), engineer Yonko Kojuharov (Construction), engineer Nelly Gryncharova (Water supply and sewerage), engineer Viliana Kisiova (Electricity), engineer Valentina Rasheva (Ventilation and heating), landscape architect Nelly Dimitrova (Planting), engineer Alexander Vichev (Landscaping) .
Main executors of the project are two companies- ''Archadia Construction'' and ''Podgor''. Construction consultant is provided by “Normis”Ltd.
The built-up area is 5695 square meters and total built-up area is 31 253 square meters. The project is situated in the Vitosha district, right next to the Initial station of the Simeonovo Gondola Lift and The Monastery Complex. It is located 3 kilometers away from Business Park Sofia.
The compositional disposition of the complex is defined by communication approaches, displacement of the ground and panoramic views to the city and to the mountain.
The main gate is provided for north-west trough diversion from Ring Road Sofia towards Simeonovo Gondola Lift.
The plot is separated in two parts - residential area and the area around the Lift where parking lots, tennis court and service house are situated. There is a welcome-in area with a reception around the main entrance. All houses are corresponding to the plot relief specialties. Further to that the dynamic silhouette of the project is harmoniously responding to the environment.
The residential part of the complex is situated centrally in the plot and is framed by a ring alley for cars. This assures quiet environment in the residential part of the Complex.Vitosha Park disposes with the spaces necessary for underground and open-air parking lots. All open-air parking lots are situated around the frame alley and the underground ones are in the basement areas of the houses. The whole area is located around the central composition axis starting from the main entrance and the welcome zone and finishing with the stage in front of the Lilia house. The axis is rising perpendicularly to the plot slope. All houses are named after a flower. There are swimming pool, sport and SPA centre, cafés and shops in front of Lilia house. The walking alleys are marked with water cascade, garden and park elements.
There are 307 apartments in the houses ''Magnolia'', ''Mimosa'', ''Rose'', ''Lilia'', ''Dahlia'', ''Camellia'' and ''Orchidea''. The complex disposes with 1, 2 or 3 bedroom apartments. The largest ones are about 160-170 square surface.
Every single detail in the complex and architectural face are composed according to its main function. The architectures have chosen natural materials- prime and water materials, wooden edging, stone paneling and wooden railings.
The construction has started two months ago. The construction structure is monolythic, combined and construction system. It is envisaged the construction works to be completed until December 2008.
11-17 September Copy 34 (475) "Stroitelstvo Gradat" newspaper
Gergana Dimitrova
MARKET OVERVIEW SOFIA FIRST HALF OF 2006 by Colliers, 19.09.2006
One of the biggest real estate firms in the world published its report about Sofia for the first half of 2006.
http://www.colliers.com/Markets/Bulgaria/News/HalfYearReportsFirstHalf2006_2
20.5% INCREASE OF THE PROPERTY PRICES IN BULGARIA DURING THE SECOND QUARTER OF THE PRESENT YEAR, 28.08.2006
Prices of the real estates in Bulgaria register increase of 20, 5% during the second quarter of the present year in comparison to the same period of the previous year. This is the result of London based properties agency Knight Frank research. It puts our country on the second place in the increase of prices in this sector among 30 different countries. The prices of the properties in Latvia and in its capital Riga increased with 45, 3% and puts the country on the first place in this rate.
At the same time, our country climbs up with two positions in the rating in comparison with the same period of the previous year.
The agency explains that the rise of the property prices in Bulgaria is a result of the stable market conditions and positive effect of number of factors. Most important of them: the easy access to credits, the low rates of interest, forthcoming access of Bulgaria in the EU (2007) and the stable increase of population incomes based on the economy growth.
The biggest climb up in the rate is for Sweden, 12 positions up during the second quarter of the present year in comparison with the same period of the previous year. The increase of the prices of properties is 12, 8% on year base.
The greatest climb down is for Serbia. The prices in the capital Belgrade have reduced with 5, 1% on the year base. Immediately before Serbia are Japan and Hong Kong where the prices of real estates have reduced respectively with 2, 7% and 2, 4% during the second quarter.
© 2006 Simeonovo Residential Park
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